Footnotes

Abbreviations

[1]        Terms for this glossary have been adapted from: definitions throughout the body of this report; the Productivity Commission report Contribution of the Not-for-Profit Sector; and the federal government's Money Smart website glossary, http://www.moneysmart.gov.au/glossary/ (accessed 4 November 2011).

Executive summary

[1]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 195.

  - Introduction and conduct of the inquiry

[1]        Journals of the Senate, 2010­­–11, No. 18, 9 February 2011, p. 528.

[2]        Louisa Mitchell et al., Financing civil society: A practitioner's view of the UK social investment market, September 2008, p. 7.

[3]        Senate Standing Committee on Economics, Disclosure regimes for charities and not-for-profit organisations, December 2008, p. 11.

[4]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xviii.

[5]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xv.

[6]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xviii.

[7]        The Productivity Commission has identified approximately 59 000 economically significant NFPs operating in Australia. Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. iii.

[8]        Foresters Community Finance, 'Finance and the Australian Not-for-Profit Sector', Submission 4–attachment 2, pp 9–22.

[9]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xix.

[10]      Department of Education, Employment and Workplace Relations (DEEWR) and Department of the Prime Minister and Cabinet (PM&C), Submission 9, p. 7.

[11]      Australian Centre for Philanthropy and Nonprofit Studies, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 35.

[12]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 8.

[13]      Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14, p. 1.

[14]      Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14, p. 1; Social Firms Australia, Submission 22, p. 1.

[15]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 9; SENTECH, Submission 18–attachment 2, Heerad Sabeti, Fourth Sector Network, The Emerging Fourth Sector: Executive Summary, pp 1-2.

[16]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 11.

[17]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp xxiii, pp 184–187.

[18]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3.

[19]      Centre for Social Impact, University of New South Wales, for National Australia Bank, Measuring Financial Exclusion in Australia, May 2011, p. 4.

[20]      Insight at Pacific Community Ventures & The Initiative for Responsible Investment at Harvard University, Impact Investing: A Framework for Policy Design & Analysis, January 2011, preface; as cited in DEEWR and PM&C, Submission 9, p. 10.

[21]      In the literature, the terms 'impact investment' and 'social investment' have both gained some currency as descriptors of this kind of investment. For the purposes of this report they are considered synonymous and used interchangeably.

[22]      Cohen founded Apax partners in the early 1980s, which has grown to be Europe's largest private equity firm, with over $20 billion under management. He has subsequently been a pioneer in the area of social investment. In 2000, he became Chairman of the Social Investment Task Force (SITF). In 2002, he co-founded and became chairman of Bridges Ventures, a sustainable growth investor that delivers financial, social and environmental benefits. In 2007 he co-founded and became a non-executive director of Social Finance, an organisation which provides access to capital, designs social finance interventions and offers advice to investors and social sector entities. In September 2010 the organisation initiated the first Social Impact Bond pilot (see chapter 6). He is currently the chair for Big Society Capital (formerly Big Society Bank), a pioneering UK social investment bank that aims to develop a social investment market.

[23]      Social Finance Ltd, Submission 16, p. 7.

[24]      Global Impact Investing Network website, http://www.thegiin.org/cgi-bin/iowa/home/index.html (accessed 1 September 2011).

[25]      Global Impact Investing Ratings System, 'What GIIRS Does', http://giirs.org/about-giirs/about (accessed 29 August 2011). 

[26]      UK Social Investment Task Force, Social Investment Ten Years On: Final Report of the Social Investment Task Force, April 2010, pp 2, 6.

[27]      Canadian Task Force on Social Finance, Mobilizing Private Capital for Public Good, December 2010, p. 1.

[28]      US Department of the Treasury, CDFI Fund: New Markets Tax Credit Program, http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5  (accessed 27 May 2011).

[29]      The White House Office of Management and Budget, Paying for Success: The Federal Budget Fiscal Year 2012, http://www.whitehouse.gov/omb/factsheet/paying-for-success (accessed 29 August 2011).

[30]      Melody Barnes, US Domestic Policy Council, The White House Blog – Building an Impact Economy, http://www.whitehouse.gov/blog/2011/06/22/building-impact-economy (accessed 29 August 2011).

[31]      Mr Paul Ronalds, First Assistant Secretary, Department of the Prime Minister and Cabinet, Committee Hansard, 1 August 2011, p. 55.

[32]      Australian Government, National Compact: Working Together, http://www.nationalcompact.gov.au/sites/www.nationalcompact.gov.au/files/files/national_compact.pdf (accessed 7 July 2011).

[33]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. iii.

[34]      Not-for-profit-Sector Reform Council Communiqué, 18 May 2011, http://www.notforprofit.gov.au/node/140 (accessed 24 October 2011). The one recommendation not supported was recommendation 9.5 pertaining to program related social innovation funds.

[35]      Australian Government, Office of the Not-for-Profit Sector: About the Office, http://www.notforprofit.gov.au/about-us/about-us-page-1 (accessed 7 July 2011).

[36]      Australian Government, Office of the Not-for-Profit Sector: Reform Council Working Groups, http://www.notforprofit.gov.au/about-office/not-profit-sector-reform/not-profit-sector-reform-council/reform-council-working-groups (accessed 28 October 2011).

[37]      The Hon Bill Shorten MP, Assistant Treasurer, 'Next Stage for Not-for-Profit Reforms Announced', Media Release, no. 2011/ 083, 27 May 2011.

[38]      Australian Charities and Not-for-Profits Commission Implementation Taskforce website, http://acnctaskforce.treasury.gov.au/content/content.aspx?doc=home.htm (accessed 15 November 2011).

[39]      Mr Robert Fitzgerald AM was a member of the Commonwealth Inquiry into the Definition of Charities and Related Organisations in 2001. He was appointed as a full-time Productivity Commissioner in January 2004 and has recently been reappointed until 2014. During this time (January 2010), the PC released its Contribution of the Not-for-Profit Sector report.

[40]      A consultation paper on the definition of charity was released by the Treasury on 28 October 2011, see http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=2161 (accessed 9 November 2011).

[41]      The Hon Bill Shorten MP, Assistant Treasurer, 'Changes to the way Philanthropic Funds are Managed', Media Release, no. 2011/113, 14 July 2011.

[42]      Department of Education, Employment and Workplace Relations website, Social Innovation, The Social Enterprise Development and Investment Fund (SEDIF), http://www.deewr.gov.au/Employment/Programs/SocialInnovation/SocialEnterprise/Pages/SEDIF.aspx (accessed 1 September 2011).

[43]      Centre for Social Impact, Submission 27, p. 25.

[44]      Department of Families, Housing, Community Services and Indigenous Affairs, 'Community Development Financial Institution Pilot', http://www.fahcsia.gov.au/sa/indigenous/funding/Pages/CommunityDevelopmentFinancialInstitutionPilot.aspx (accessed 11 May 2011).

Chapter 2 - A Social Finance Taskforce for Australia

[1]        Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. iii, xxiii, xxvi.

[2]        The Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 2.

[3]        Social Ventures Australia, Submission 2, p. 1; Foresters Community Finance, Submission 4–attachment 3, 'Financing social enterprise: understanding needs and realities', 2010, p. 5.

[4]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p.195.

[5]        Monitor Institute, Investing for Social and Environmental Impact: A design for catalyzing an emerging industry, 2009, p. 45. As cited by Department of Education, Employment and Workplace Relations (DEEWR) and Department of Prime Minister and Cabinet (PM&C), Submission 9, p. xi.

[6]        Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, pp 8–9; DEEWR and PM&C, Submission 9, pp 22–23.

[7]        Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. xxxiii.

[8]        Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. xxxix.

[9]        Dr Ingrid Burkett, Knode Pty Ltd, Committee Hansard, 9 September 2011, p. 31.

[10]      Ms Therese Wilson, Chairperson, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 30.

[11]      Ms Julie White, Global Head, Macquarie Group Foundation, Committee Hansard, 23 September 2011, p. 54.

[12]      Mr David Crosbie, Community Council for Australia, Committee Hansard, 1 August 2011, p. 28.

[13]      Committee Hansard, 23 September 2011, p. 55.

[14]      Fundraising Institute Australia, Submission 23, p. 5.

[15]      Community Council for Australia, Submission 15, p. 4.

[16]      Mr Les Hems, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 38.

[17]      Mr Paul Ronalds, First Assistant Secretary, The Department of the Prime Minister and Cabinet, Committee Hansard, 26 September 2011, p. 28.

[18]      Mr Tim O'Learly, General Manager Corporate Responsibility, National Australia Bank, in Foresters Community Finance, 'Finance and the Australian Not-for-Profit Sector', Submission 4–attachment 2, p. 4.

[19]      Mr Paul Ronalds, First Assistant Secretary, The Department of the Prime Minister and Cabinet, Committee Hansard, 1 August 2011, p. 61.

[20]      Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. xxiv.

[21]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 26.

[22]      Social Ventures Australia, Committee Hansard, 1 August 2011, pp 18–19; Social Ventures Australia, Submission 2, p. 1.

[23]      Social Ventures Australia, Submission 2, p. 2; DEEWR and PM&C, Submission 9, pp 10–11.

[24]      Christian Super, Submission 12, p. 5.

[25]      Catherine Brown and Associates Pty Ltd, Submission 11, p. 2.

[26]      Foresters Community Finance, Committee Hansard, 1 August 2011, p. 31; Social Ventures Australia, Committee Hansard, 1 August 2011, pp 18, 23; Department of Education Employment and Workplace Relations, Committee Hansard, 23 September 2011, p. 60; Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 9; Department of the Prime Minister and Cabinet, Committee Hansard, 26 September 2011, pp 28-29; Foresters Community Finance, Supplementary Submission 4, p. 10; The Centre for Social Impact, Submission 27, p. 12; Community Council for Australia, Submission 15a; Knode Pty Ltd, Submission 30.

[27]      Social Investment Task Force, Final Report: Social Investment Ten Years On, April 2010, p. 2.

[28]      The Social Investment Task Force, http://www.socialinvestmenttaskforce.org/ (accessed 30 September 2011).

[29]      Ms Kylie Charlton, 'Does Australia need a social investment taskforce?', Centre for Social Impact blog, 8 April 2011.

[30]      Social Investment Task Force, Final Report: Social Investment Ten Years On, April 2010, p. 2.

[31]      Committee Hansard, 1 August 2011, p. 64.

[32]      JBWere, Submission 19, p. 22.

[33]      Canadian Taskforce on Social Finance, Mobilizing Private Capital for Public Good, December 2010; Canadian Taskforce on Social Finance, http://socialfinance.ca/taskforce, (accessed 30 September 2011).

[34]      MaRS Discovery District, 'Canada's opportunity: Mobilizing private capital for public good', http://www.marsdd.com/2010/11/30/canada%E2%80%99s-opportunity-mobilizing-private-capital-for-public-good (accessed 27 October 2011).

[35]      Ms Kylie Charlton, 'Does Australia need a social investment taskforce?', Centre for Social Impact blog, 8 April 2011.

[36]      Ms Julie White, Global Head, Macquarie Group Foundation, Committee Hansard, 22 September 2011, p. 53.

[37]      Foresters Community Finance, Committee Hansard, 1 August 2011, p. 31; Social Ventures Australia, Committee Hansard, 1 August 2011, pp 18, 23; Department of Education Employment and Workplace Relations, Committee Hansard, 23 September 2011, p. 60; Ms Kylie Charlton, Committee Hansard, 26 September 2011, p. 9; Department of Prime Minister and Cabinet, Committee Hansard, 26 September 2011, pp 28–29; Foresters Community Finance, Supplementary submission 4, p. 10; The Centre for Social Impact, Submission 27, p. 12; Community Council for Australia, Supplementary Submission 15; Knode Pty Ltd, Submission 30.

[38]      Committee Hansard, 1 August 2011, p. 18.

[39]      Committee Hansard, 1 August 2011, p. 23.

[40]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 155–195.

[41]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, (recommendation 7.5), p. xlvii.

[42]      Mr Robert Fitzgerald AM, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 21.

[43]      Committee Hansard, 26 September 2011, p. 23.

[44]      Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. liii.

[45]      Committee Hansard, 26 September 2011, p. 31.

[46]      Ms Belinda Drew, Chief Executive Officer, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 34.

[47]      Ms Kylie Charlton, private capacity, additional information (received 26 September 2011), p. 3.

[48]      Community Council for Australia, Supplementary submission 15, pp 1–2.

[49]      Community Council for Australia, Supplementary submission 15, p. 2.

[50]      Community Council for Australia, Supplementary submission 15, p. 3; Knode Pty Ltd, Submission 30, p. 2.

[51]      Knode Pty Ltd, Submission 30, p. 2; Foresters Community Finance, Submission 4a, p. 10.

[52]      Foresters Community Finance, Supplementary submission 4, p. 10.

[53]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 188, 194–95.

[54]      Mr Robert Fitzgerald AM, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 21.

[55]      Committee Hansard, 26 September 2011, p. 30.

[56]      Committee Hansard, 26 September 2011, p. 28.

[57]      Committee Hansard, 23 September 2011, p. 60.

[58]      Knode Pty Ltd, Submission 30, p. 1.

[59]      JP Morgan, Impact Investments: An emerging asset class, November 2010, p. 5; Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 20.

PART II: Demand, supply and the role of intermediaries - Needs and barriers to obtaining finance within the social economy

[1]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 184.

[2]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 187.

[3]        Social Ventures Australia, Submission 2, p. 1.

[4]        Foresters Community Finance, Submission 4–attachment 2, 'Finance and the Australian Not-for-Profit Sector', March 2011, p. 4; Social Finance Pty Ltd, Submission 21, p. 1.

[5]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xxxiii.

[6]        Social Ventures Australia, Submission 2, p. 3; Social Traders, Submission 7, p. 1; JBWere, Submission 19, p. 7.

[7]        Productivity Commission, Submission 6, p. 1.

[8]        Social Traders, Submission 7, p. 2; JBWere, Submission 19, p. 4.

[9]        Foresters Community Finance, 'Finance and the Australian Not-for-Profit Sector', Submission 4–attachment 2, pp 13, 22.

[10]      Department of Education, Employment and Workplace Relations (DEEWR) and Department of the Prime Minister and Cabinet (PM&C), Submission 9, pp 13–14, 17.

[11]      Community Council for Australia, Submission 15, p. 2

[12]      DEEWR and PM&C, Submission 9, p. 24; The Centre for Social Impact, Submission 27, p. 4.

[13]      Social Ventures Australia, Submission 2, p. 3; Productivity Commission, Submission 6, p. 2; JB Were, Submission 19, p. 5; Submission 9, pp 24–25; Community Council for Australia, Submission 15, p. 3; Social Finance Pty Ltd, Submission 21, pp 1–2.

[14]      Social Firms Australia, Submission 22, pp 3, 4.

[15]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 23.

[16]      DEEWR and PM&C, Submission 9, p. 24.

[17]      Mr Michael Traill, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 18.

[18]      DEEWR and PM&C, Submission 9, p. 16; Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 242; JBWere, Submission 19, p. 5; The Centre for Social Impact, Submission 27, p. 14.

[19]      Community Council for Australia, Submission 15, p. 3.

[20]      Fundraising Institute Australia, Submission 23, p. 3.

[21]      Committee Hansard, 1 August 2011, p. 58.

[22]      Australian Institute of Company Directors, Directors Social Impact Study 2011, September 2011, pp 4, 6, 13–14.

[23]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 32–33.

[24]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 39.

[25]      DEEWR and PM&C, Submission 9, p. 24.

[26]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 32–33.

[27]      R. E. Ross Trust, Inviting Investment in social enterprises: A prospectus framework for the social sector, 2007 http://www.rosstrust.org.au/docs/RERoss_Prospectus.pdf (accessed 13 October 2011).

[28]      Our Community, 'The Community Financial Centre', http://www.ourcommunity.com.au/financial/financial_main.jsp (accessed 13 October 2010), also additional information provided to the committee 21 September 2011.

[29]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 189.

[30]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 35.

[31]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 37.

[32]      ProBono News, 'COAG approves NFP Standard Chart of Accounts', Media release, 22 April 2010, http://www.probonoaustralia.com.au/news/2010/04/coag-approves-nfp-standard-chart-accounts (accessed 21 September 2011); COAG website, Queensland University of Technology, Australian Centre for Philanthropy and Nonprofit Studies, 'Standard Chart of Accounts (and data dictionary)', April 2010, http://www.coag.gov.au/coag_meeting_outcomes/2010-04-19/docs/Standard_chart_accounts.pdf (accessed 21 September 2011); Department of Finance and Deregulation, 'Standard Chart of Accounts for reporting by not-for-profit organisations', Finance Circular No. 2011/03, http://www.finance.gov.au/publications/finance-circulars/2011/docs/Finance-Circular-2011-03_National_Standard_Chart_of_Accounts.pdf (accessed 14 November 2011).

[33]      Professor Myles McGregor-Lowndes, Centre Director, Queensland University of Technology, Australian Centre for Philanthropy and Nonprofit Studies in ProBono News, 'COAG approves NFP Standard Chart of Accounts', Media release, 22 April 2010, http://www.probonoaustralia.com.au/news/2010/04/coag-approves-nfp-standard-chart-accounts (accessed 21 September 2011).

[34]      Queensland University of Technology, 'Standard Chart of Accounts', https://wiki.qut.edu.au/display/CPNS/Standard+Chart+of+Accounts (accessed 21 September 2011).

[35]      Committee Hansard, 9 September 2011, pp 59–60.

[36]      Christian Super, Submission 12, pp 2–3; Social Finance Pty Ltd, Submission 16, p. 1.

[37]      JBWere, Submission 19, p. 5.

[38]      Social Ventures Australia, Submission 2, p. 1; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 5.

[39]      Christian Super, Submission 12, p. 6.

[40]      Foresters Community Finance, 'Finance and the Australian Not-for-Profit Sector', Submission 4–attachment 2, p. 5; SENTECH, Submission 18, p. 2.

[41]      United Kingdom Social Investment Taskforce in Submission 9, p. 12; JBWere, Submission 19, pp 2, 7.

[42]      DEEWR and PM&C, Submission 9, pp 16–17.

[43]      DEEWR and PM&C, Submission 9, p. 16.

[44]      Community Council for Australia, Submission 15, p. 3; Fundraising Institute Australia, Submission 23, p. 3.

[45]      Fundraising Institute Australia, Submission 23, p. 3.

[46]      Dr Ingrid Burkett, Managing Director, Knode Pty Ltd, Committee Hansard, 9 September 2011, p. 31.

[47]      Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 2.

[48]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 44.

[49]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 47.

[50]      Hepburn Community Wind Park Co-operative Limited, Submission 20, p. 2.

[51]      Hepburn Community Wind Park Co-operative Limited, Submission 20, p. 3.

[52]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 47–48.

[53]      Committee Hansard, 9 September 2011, p. 4.

[54]      Australian Securities and Investment Commission, Money Smart Website, 'Glossary – equity investment', http://www.moneysmart.gov.au/glossary/e/equity-investment (accessed 24 October 2011).

[55]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 31.

[56]      Many Rivers Microfinance, Submission 26, p. 3.

[57]      Community Council for Australia, Submission 15, p. 3.

[58]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 48–49.

[59]      Community Sector Banking, Submission 10, p. 8.

[60]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 49.

[61]      Social Ventures Australia, Submission 2, p. 4.

[62]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 44.

[63]      Social Traders, Submission 7, p. 2.

[64]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 20–24.

[65]      Foresters Community Finance, Submission 4–attachment 3, pp 25–28.

[66]      Foresters Community Finance, Submission 4–attachment 3, pp 29–31.

[67]      Foresters Community Finance, Submission 4–attachment 3, pp 32–33.

[68]      The Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 29.

[69]      Social Traders, Submission 7, p. 2.

[70]      Foresters Community Finance, Submission 4, attachment 3, pp 14–19.

[71]      Hepburn Community Wind Park Co-operative Limited, Submission 20, p. 2.

[72]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 15.

[73]      Foresters Community Finance, Submission 4–attachment 3, p. 15.

[74]      Mr Christopher Thorn, JBWere, Committee Hansard, 1 August 2011, p. 9.

[75]      DEEWR and PM&C, Submission 9, p. xix.

[76]      DEEWR and PM&C, Submission 9, pp 33, xix–xx; Foresters Community Finance, Submission 4 – attachment 3, p. 39.

[77]      The Centre for Social Impact, Submission 27, p. 7; Ms Juanita Pope, Senior Lawyer, PILCH Connect, Committee Hansard, 9 September 2011, p. 52; DEEWR and PM&C, Submission 9, pp 32–33.

[78]      The Centre for Social Impact, Submission 27, p. 7.

[79]      Productivity Commission, Submission 6, p. 2; DEEWR and PM&C Submission 9, pp 13, 32; JBWere, Submission 19, p. 8; Social Finance Pty Ltd, Submission 21, p. 1.

[80]      JBWere, Submission 19, p. 6.

[81]      DEEWR and PM&C, Submission 9, pp 33–34.

[82]      DEEWR and PM&C, Submission 9, pp 13, 34; Social Finance Pty Ltd, Submission 21, pp 1–2.

[83]      Social Traders, 'Measuring Impact', http://www.socialtraders.com.au/measuring-impact (accessed 12 September 2011).

[84]      Christian Super, Submission 12, p. 6.

[85]      Christian Super, Submission 12, p. 6.

[86]      Mr Glen Saunders, Committee Hansard, 9 September 2011, p. 5.

[87]      DEEWR and PM&C, Submission 9, p. 34.

[88]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 107–108.

[89]      Social Ventures Australia, Submission 2, p. 4; Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 193.

[90]      DEEWR and PM&C, Submission 9, p. 29.

[91]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 38.

[92]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 193.

[93]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 193.

[94]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 38; DEEWR and PM&C, Submission 9, p. 30.

[95]      Australian Government, National Compact: Working together, 17 March 2010.

[96]      YMCA, Submission 1, p. 3; Community Council for Australia, Submission 15, p. 3; Fundraising Institute Australia, Submission 23, pp 4–5; Father Brian Lucas, General Secretary, Australian Catholic Bishops Conference and Mr Trevor Ruthenberg, Executive Officer, Lutheran Church, Committee Hansard, 23 September 2011, pp 9, 23–30; Mr Sandy Cameron, Manager, Policy and Research, Cape York Institute for Policy and Leadership, Committee Hansard, 23 September 2011, p. 33; Dr Thomas Calma, Director, Australian Indigenous Leadership Centre, Committee Hansard, 23 September 2011, p. 39.

[97]      Committee Hansard, 23 September 2011, pp 29–30.

[98]      Australian Government, National Compact: working together, March 2010, p. 4.

[99]      Productivity Commission, Contribution of the Not-for-Profit Sector, (Recommendation 14.2), January 2010, p. liii.

[100]    Mr Paul Ronalds, First Assistant Secretary, Office of Work and Family, Department of Prime Minister and Cabinet, Committee Hansard, 1 August 2011, p. 55.

Chapter 4 - Supply of capital to the social economy

[1]        JBWere, Submission 19, p. 4.

[2]        DEEWR and PM&C, Submission 9, p. 15.

[3]        Ms Therese Wilson, Chairperson, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 30.

[4]        Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 6.

[5]        Mr Dennis Moriarty, Our Community, Committee Hansard, 9 September 2011, p. 56.

[6]        Foresters Community Finance, Submission 4–attachment 2, 'Finance and the Australian Not-for-Profit Sector', March 2011, pp 48–52. The term 'financial exclusion' refers to the state of being unable to access basic financial products and services in order to participate in the economy.

[7]        Foresters Community Finance, Submission 4–attachment 2, March 2011, p. 41.

[8]        Foresters Community Finance, Submission 4–attachment 2, 'Finance and the Australian Not-for-Profit Sector', March 2011, pp 6, 42.

[9]        Foresters Community Finance, Submission 4–attachment 2, 'Finance and the Australian Not-for-Profit Sector', March 2011, p. 41; Community Sector Banking, Submission 10, p. 5.

[10]      Many Rivers Microfinance, Submission 26, attachment 3, pp 1-2.

[11]      DEEWR and PM&C, Submission 9, pp18–19; Social Ventures Australia, Submission 2, pp 2–3; YMCA, Submission 1, p. 1; Productivity Commission, Submission 6, p. 2; The Chris O'Brien Lifehouse at RPA, Submission 8, pp 1–2; Benevolent Society, Submission 25, p. 3.

[12]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 42.

[13]      JBWere, Submission 19, p. 4.

[14]      Social Traders, Submission 7, p. 1; DEEWR and PM&C, Submission 9, p. 16; Social Ventures Australia, Submission 2, p. 3; Belinda Drew, Chief Executive Officer, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 31.

[15]      JB Were, Submission 19, pp 4–5.

[16]      Community Sector Banking, Submission 10, p. 6.

[17]      Foresters Community Finance, Submission 4–attachment 2, 'Finance and the Australian Not-for-Profit Sector', March 2011, p. 19.

[18]      Social Finance Ltd, Submission 16, p. 13.

[19]      Christian Super, Submission 12, p. 6.

[20]      Social Finance Ltd, Submission 16, p. 14.

[21]      Community Sector Banking, Submission 10, p. 6.

[22]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 191–192.

[23]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 169.

[24]      Philanthropy Australia, 'Foundations and Trusts', http://www.philanthropy.org.au/fdntrust/index.html (accessed 14 November 2011). The terms 'foundation' and 'philanthropic foundation' are used broadly in the remainder of this report to refer to this entire class of intermediary bodies.

[25]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 191–192.

[26]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September, p. 9.

[27]      Social Traders, Submission 7, p. 7; Community Sector Banking, Submission 10, p. 12; Mr Simon Lewis, Head of Strategic Partnerships, Communications and Community, The Trust Company, Committee Hansard, 9 September 2011, pp 48–49.

[28]      Sir Ronald Cohen, Committee Hansard, 1 August 2011, p. 66.

[29]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[30]      DEEWR and PM&C, Submission 9, p. 24; The Hon Bill Shorten MP, Assistant Treasurer and Minister for Financial Services and Superannuation, 'Changes to the way Philanthropic Funds are Managed', Media Release 113, 14 July 2011.

[31]      Vanessa Meachen, Philanthropy Australia, A Guide to Giving for Australians, April 2010, p. 28.

[32]      Guidelines 19 and 30-32, Taxation Administration Act 1953 – Private Ancillary Fund Guidelines 2009.

[33]      Vanessa Meachen, Philanthropy Australia, A Guide to Giving for Australians, April 2010, p. 29.

[34]      Explanatory Memorandum, Tax Laws Amendment (2011 Measures No. 7) Bill 2011, p. 86.

[35]       Department of the Treasury, Draft Public Ancillary Fund Guidelines 2011, available at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=2048 (accessed 30 August 2011).

[36]      The distinction between 'program' and 'mission' related investments is that program related investments seek to further the charity's aims directly whilst potentially making some return, whereas mission related investments seek to make the best financial return but also further the organisation's aims.

[37]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2011, pp 191–192.

[38]      DEEWR and PM&C, Submission 9, p. 19.

[39]      Canadian Taskforce on Social Finance, Mobilizing Private Capital for Public Good, December 2010, p. 3.

[40]      Philanthropy Australia, What is a Community Foundation?, http://communityfoundations.philanthropy.org.au/about-community-foundations/what-is-a-community-foundation/  (accessed 30 August 2011).

[41]      Ms Rosalind Strong, Chair, Sydney Community Foundation, Committee Hansard, 23 September 2011, pp 6-7.

[42]      Catherine Brown and Associates Pty Ltd, Submission 11, p. 3.

[43]      Mr Paul Ronalds, First Assistant Secretary, Department of Prime Minister and Cabinet, Committee Hansard, 26 September 2011, pp 28–29.

[44]      Australian Catholic Bishops Conference, Submission 28, p. 2; Lutheran Church of Australia, Submission 34, pp 2, 5; Mr Michael Nicholls, Business Manager, General Synod, Anglican Church of Australia, Committee Hansard, 23 September 2011, p. 27.

[45]      Committee Hansard, 23 September 2011, pp 26-27.

[46]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2011, pp 191–192.

[47]      Catherine Brown, Submission 11, p. 1.

[48]      Committee Hansard, 26 September 2011, p. 22.

[49]      Freshfields Bruckhaus Deringer, produced for the Asset Management Working Group of the UNEP Finance Initiative, A legal framework for the integration of environmental, social and governance issues into institutional investment, October 2005, p. 8, http://www.unepfi.org/fileadmin/documents/freshfields_legal_resp_20051123.pdf (accessed 17 October 2011).

[50]      Freshfields Bruckhaus Deringer, A legal framework for the integration of environmental, social and governance issues into institutional investment, October 2005, p. 8.

[51]      Catherine Brown, Submission 11, pp 2–3.

[52]      JB Were, Submission 19, p. 21.

[53]      JB Were, Submission 19, p. 21.

[54]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[55]      Senator the Hon Nick Sherry, comments in an address to the Centre for Social Impact's Investing for Impact conference, 8 April 2010, as cited in the power point presentation 'Capital Market for Social Investment' tabled by the Centre for Social Impact at a public hearing in Canberra on 1 August 2011.

[56]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43; Mr Christopher Thorn, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 50.

[57]      Catherine Brown, Submission 11, pp 2–3.

[58]      JBWere, Submission 19, p. 21.

[59]      Mr Christopher Thorn, Chief Executive Officer, JBWere Philanthropic Services, Committee Hansard, 1 August 2011, p. 11.

[60]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[61]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[62]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 191.

[63]      Mr Les Hems, Centre for Social Impact, Committee Hansard, 1 August 2011, pp 41–42.

[64]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[65]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[66]      Ms Julie White, Global Head, Macquarie Group Foundation, Committee Hansard, 23 September 2011, p. 55.

[67]      DEEWR and PM&C, Submission 9, p. 20.

[68]      Mr David Ward, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 43.

[69]      Mr Brent Cubis, Chief Financial Officer and Company Secretary, Chris O'Brien Lifehouse at RPA, Committee Hansard, 23 September 2011, p. 22.

[70]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, Monday 26 September, p. 22.

[71]      DEEWR and PM&C, Submission 9, p. 24.

[72]      JBWere, Submission 19, pp 21, 29; Christian Super Fund, Submission 12; Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 5.

[73]      Mr Gordon Noble, ASFA, Committee Hansard, 26 September, p. 14.

[74]      The UN Principles for Responsible Investment can be found at 'The Principles for Responsible Investment', http://www.unpri.org/principles/ (accessed 26 September 2011). The full list of Australian signatories to the Principles can be found at 'Signatories to the Principles for Responsible Investment', http://www.unpri.org/signatories/index.php?country=Australia (accessed 26 September 2011).

[75]      Responsible Investment Association Australasia, Responsible Investment 2010, November 2010, p. 7.

[76]      Mr Peter Murphy, Chief Executive Officer, Christian Super, Committee Hansard, 23 September 2011, p. 2.

[77]      Additional information received from the Department of Education, Employment and Workplace Relations, 'Foresters Community Finance profile', 12 August 2011.

[78]      Mr Peter Murphy, Christian Super, Committee Hansard, 23 September 2011, p. 5.

[79]      Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 5.

[80]      Mr Gordon Noble, Committee Hansard, 26 September 2011, p. 16.

[81]      Mr Peter Quarmby, Community Sector Banking, Committee Hansard, 23 September 2011, p. 57.

[82]      Mr Christopher Thorn, Executive Director, JBWere Philanthropic Services, Committee Hansard, 1 August 2011, pp 16–17.

[83]      Ms Belinda Drew, Foresters Community Finance, Committee Hansard, 1 August 2011, pp 32‑33.

[84]      Committee Hansard, 26 September 2011, p. 22.

[85]      Committee Hansard, 23 September 2011, pp 4–5.

[86]      Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 5.

[87]      Christian Super, Committee Hansard, 23 September 2011, pp 4–5, 7–8.

[88]      Committee Hansard, 23 September 2011, p. 2.

[89]      Mr Michael Traill, Social Ventures Australia, Committee Hansard, 1 August 2011, pp 19, 21.

[90]      Mr Gordon Noble, ASFA, Committee Hansard, 26 September 2011, pp 14–15.

[91]      Mr Timothy Macready, Chief Investment Officer, Christian Super, Committee Hansard, 23 September 2011, p. 2.

[92]      Hepburn Community Wind Park Co-operative Limited, Submission 20, pp 4–5.

[93]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, p. 61.

[94]      Mr David Waldren, General Manager, Carlton Brewery Redevelopment, Grocon, Committee Hansard, 9 September 2011, p. 67.

[95]      Christian Super, Submission 12, pp 3–4.

[96]      DEEWR and PM&C, Submission 9, p. 7 and Appendix 1 p. v. Chapter 7 explores how companies can report on CSR activities through initiatives such as 'integrated reporting'.

[97]      Mr Andrew MacLeod, Chief Executive Officer, Committee for Melbourne and Chairman, United National Principles for Social Investment, Committee Hansard, 9 September 2011, p. 20.

[98]      Mr Andrew MacLeod, Committee Hansard, 9 September 2011, pp 20, 23.

[99]      Mr Andrew MacLeod, Committee Hansard, 9 September 2011, p. 20.

[100]    Mr Stephen Nash, Chief Executive Officer, Home Ground Services, Committee Hansard, 9 September 2011, pp 66–67.

[101]    Mr Gordon Noble, Director of Government Relations and Strategy, ASFA, Committee Hansard, 26 September 2011, p. 19.

[102]    Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 352.

[103]    DEEWR and PM&C, Submission 9, pp ix–x.

[104]    SENTECH, Submission 18, p. 2.

[105]    Hepburn Community Wind Park Co-operative, Submission 20, p. 1.

[106]    Mt Buffalo Community Enterprise, Submission 24, p. 7.

[107]    SENTECH, Submission 18, p. 2.

[108]    Mr Toby Hall, Mission Australia, Committee Hansard, 23 September 2011, p. 54.

[109]    Mr Les Hems, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 42.

[110]    Community Council for Australia, Submission 15, pp 3–4; Fundraising Institute Australia, Submission 23, pp 4–5.

[111]    Submission 15, p. 4.

[112]    DEEWR and PM&C, Submission 9, p. 35.

[113]    Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 3.

[114]    Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, pp 6–7.

[115]    Committee Hansard, 26 September 2011, p. 26.

[116]    Mr Glen Saunders, Triodos Bank, Committee Hansard, 9 September 2011, p. 4.

Chapter 5 - Developing intermediaries in a social capital market

[1]        Centre for Social Impact, Submission 27, pp 5, 7–8; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3 and Supplementary Submission, p. 1; JBWere, Submission 19, pp 6‑10; Social Ventures Australia, Submission 2, p. 3; Social Finance Ltd, Submission 16; Ms Kylie Charlton, opening statement tabled at a public hearing in Canberra on 26 September 2011, p. 2; Mr David Thompson, National Roundtable of Nonprofit Organisations, Committee Hansard, 9 September 2011, p. 16.

[2]        Department of Education, Employment and Workplace Relations  (DEEWR) and the Department of the Prime Minister and Cabinet (PM&C), Submission 9, p. 32.

[3]        DEEWR and PM&C, Submission 9, pp 32–33.

[4]        Productivity Commission, Contribution of the Not-for-Profit Sector, pp 185, 234; Centre for Social Impact, Submission 27, p. 7.

[5]        Social Ventures Australia, Committee Hansard, 1 August 2011, p. 24.

[6]        As cited by DEEWR and PM&C, Submission 9, p. 32.

[7]        Productivity Commission, Contribution of the Not-for-Profit Sector, pp 185–191; Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 20.

[8]        DEEWR and PM&C, Submission 9, p. xix.

[9]        DEEWR and PM&C, Submission 9, pp 32–33.

[10]      Productivity Commission, Contribution of the Not-for-Profit Sector, pp 189–190, 194.

[11]      Mr Christopher Thorn, Executive Director, JB Were, Committee Hansard, 1 August 2011, p. 9.

[12]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 55.

[13]      Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 20.

[14]      Christian Super, Submission 12, pp 3–4.

[15]      Social Investment Australia, 'Investment Products: The Social Impact Property Fund No. 1', http://www.socialinvestmentaustralia.com.au/investment-products/7.html (accessed 7 October 2011).

[16]      Christian Super, Submission 12, p. 3.

[17]      Christian Super, Submission 12, pp 3–4.

[18]      Centre for Social Impact, Submission 27, p. 7.

[19]      DEEWR and PM&C, Submission 9, p. 32.

[20]      DEEWR and PM&C, Submission 9, p. 32

[21]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 189.

[22]      DEEWR and PM&C, Submission 9, pp. 32–33, xix.

[23]      Foresters Community Finance, Supplementary Submission, p. 1.

[24]      Cynthia Shanmugalingam et al., Growing Social Ventures: the role of intermediaries and investors, February 2011, p. 32.

[25]      JBWere, Submission 19, p. 7.

[26]      JBWere, Submission 19, p. 7.

[27]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 43.

[28]      Centre for Social Impact, Submission 27, p. 7.

[29]      Community Council for Australia, Submission 15, p. 5.

[30]      Gina Anderson, 'Social investors need advice', Australian Financial Review, 25 August 2011, p. 63.

[31]      Committee Hansard, 23 October 2011, p. 58.

[32]      Dr Richard Seymour, The University of Sydney Business School, Submission 36a, p. 5.

[33]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 185.

[34]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009, pp 17–18, http://www.fahcsia.gov.au/sa/indigenous/funding/CDFI_pilot/Documents/CDFI-ScopingStudy.pdf (accessed 23 May 2011).

[35]      Foresters Community Finance, Submission 4, p. 1; Foresters Community Finance website, www.foresters.org.au (accessed 20 October 2011).

[36]      Mr Peter Quarmby, Executive Director, Community Sector Banking, Committee Hansard, 23 September 2011, p. 51.

[37]      Social Ventures Australia, Submission 2, p. 1.

[38]      Many Rivers Microfinance, Submission 26, attachment 1, pp 1-3.

[39]      DF Mortimer & Associates, Submission 5, pp 1-2.

[40]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009, pp 17‑18, http://www.fahcsia.gov.au/sa/indigenous/funding/CDFI_pilot/Documents/CDFI-ScopingStudy.pdf (accessed 23 May 2011).

[41]      Productivity Commission, Submission 6, p. 2.

[42]      Social Ventures Australia Scoping Study, Community Development Finance Institutions: A new option for addressing financial exclusion in Australia, December 2009, pp 64–82.

[43]      Department of Families, Housing, Community Services and Indigenous Affairs, 'Community Development Financial Institution Pilot', http://www.fahcsia.gov.au/sa/indigenous/funding/Pages/CommunityDevelopmentFinancialInstitutionPilot.aspx (accessed 11 May 2011).

[44]      Ms Robyn Oswald, Manager, Money Management Branch, Department of Families, Housing, Community Services and Indigenous Affairs, Committee Hansard, 1 August 2011, p. 2.

[45]      No further funding for the program has been allocated beyond this round.

[46]      Ms Robyn Oswald, Manager, Money Management Branch, Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), Committee Hansard, 1 August 2011, p. 2.

[47]      Ms Robyn Oswald, FaHCSIA, Committee Hansard, 1 August 2011, p. 7.

[48]      Ms Robyn Oswald, FaHCSIA, Committee Hansard, 1 August 2011, p. 3.

[49]      Foresters Community Finance, Submission 4–attachment 1, 'Financial Inclusion, market failures and new markets: Possibilities for Community Development Finance Institutions in Australia', October 2008, p. 41.

[50]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009, p. 22.

[51]       CDFI Data Project Publication Committee, Providing Capital, Building Communities, Creating Impact: Fiscal Year 2008, p. 9, http://opportunityfinance.net/store/downloads/cdp_fy2008.pdf  (accessed 2 June 2011).

[52]      US Federal Financial Institutions Examination Council, Community Reinvestment Act: Background and Purpose, http://www.ffiec.gov/cra/history.htm (accessed 12 May 2011).

[53]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009, p. 21.

[54]      Coalition of Community Development Financial Institutions, What is the CDFI Fund?, http://cdfi.org/index.php?page=info-1a (accessed 12 May 2011).

[55]      US Department of the Treasury, About the CDFI Fund, http://www.cdfifund.gov/who_we_are/about_us.asp (accessed 12 May 2011).

[56]      Nick Carey, Reuters, Regulators Close ShoreBank in Chicago, 21 August 2010, http://www.reuters.com/article/2010/08/21/us-shorebank-failure-idUSTRE67J5AE20100821 (accessed 20 October 2011).

[57]      GHK, Evaluation of Community Development Finance Institutions (CDFIs), March 2010, p. 13.

[58]      HM Revenue and Customs, Community investment tax relief manual: Brief guide for investors, http://www.hmrc.gov.uk/manuals/citmanual/CITM9900.htm#IDAGFY2C (accessed 25 May 2011).

[59]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009, p. 24.

[60]      Community Development Finance Association, About the CDFA, http://www.cdfa.org.uk/about-cdfa/ (accessed 30 May 2011).

[61]      Community Development Finance Association, Inside Out 2010: The State of Community Development Finance, December 2010, p. 7, http://www.cdfa.org.uk/wp-content/uploads/2010/12/Inside-Out-20101.pdf  (accessed 24 May 2011).

[62]      Community Development Finance Association, Inside Out 2010: The State of Community Development Finance, December 2010, p. 11.

[63]      GHK, Evaluation of Community Development Finance Institutions (CDFIs), March 2010, p. ix, http://www.bis.gov.uk/assets/biscore/enterprise/docs/10-814-evaluation-community-development-finance-institutions (accessed 12 October 2011).

[64]      DEEWR and PM&C, Submission 9, p. 32.

[65]      Centre for Social Impact, Submission 27, p. 7.

[66]      Centre for Social Impact, Submission 27, p. 7.

[67]      Ms Juanita Pope, Senior Lawyer, PILCH Connect, Committee Hansard, 9 September 2011, p. 52.

[68]      Ms Nonie Wales, Managing Director for People and Culture, Matrix On Board, Committee Hansard, 9 September 2011, p. 52.

[69]      Mr Dennis Moriarty, Managing Director, Our Community, Committee Hansard, 9 September 2011, p. 51.

[70]      Mr Dennis Moriarty, Managing Director, Our Community, Committee Hansard, 9 September 2011, p. 56.

[71]      Dr Richard Seymour, The University of Sydney Business School, Submission 36, p. 2.

[72]      Submission 36, p. 2.

[73]      The University of New South Wales, the University of Melbourne, Swinburne University of Technology and the University of Western Australia.

[74]      Centre for Social Impact, 'Postgraduate Program: Course Descriptions', http://www.csi.edu.au/site/Postgraduate_Program/Course_descriptions.aspx (accessed 12 October 2011).

[75]      Mr Benny Callaghan, Chief Executive Officer, School for Social Entrepreneurs Australia, Committee Hansard, 23 September 2011, p. 9.

[76]      Centre for Social Impact, 'Research Projects', http://www.csi.edu.au/site/Research_Projects/Research_projects.aspx (accessed 7 November 2011).

[77]      The Australian Centre for Philanthropy and Nonprofit Studies, http://www.bus.qut.edu.au/research/cpns/ (accessed 12 October 2011).

[78]      Dr Richard Seymour, The University of Sydney Business School, Submission 36, p. 3.

[79]      DEEWR and PM&C, Submission 9, p. 33.

[80]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 8.

[81]      Centre for Social Impact, Submission 27, pp 7–8.

[82]      Indigenous Stock Exchange, 'About Us: Supporting People with Dreams', http://www.isx.org.au/about/ (accessed 13 October 2011).

[83]      Mr Ashley Rosshandler, Founder and Chief Executive Officer, Karma Currency Foundation, Committee Hansard, 9 September 2011, p. 53.

[84]      JBWere, Submission 19, pp 18–19.

[85]      Mr Christopher Thorn, Executive Director, JBWere, Committee Hansard, 1 August 2011, p. 13.

[86]      Cape York Institute for Policy and Leadership, Submission 31, p. 16.

[87]      Productivity Commission, Submission 6, p. 2.

[88]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 8.

[89]      Ms Juanita Pope, Senior Lawyer, PILCH Connect, Committee Hansard, 9 September 2011, p. 52.

[90]      Foresters Community Finance, Submission 4–attachment 1, 'Financial Inclusion, market failures and new markets: Possibilities for Community Development Finance Institutions in Australia', October 2008, pp 42–43.

[91]      Department of Families, Housing, Community Services and Indigenous Affairs, 'Community Development Financial Institution Scoping Study', http://www.fahcsia.gov.au/sa/communities/pubs/CDFI_pilot/Documents/exec_summary.htm   (accessed 7 November 2011).

[92]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 190.

[93]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 194.

[94]      Many Rivers Microfinance, Submission 26, p. 2.

[95]      Dr Ingrid Burkett, Managing Director, Knode Pty Ltd, Committee Hansard, 9 September 2011, p. 34.

[96]      Ms Therese Wilson, Chairperson, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 34.

[97]      Mr Ian Gill, Chief Executive Officer, Ecotrust, Committee Hansard, 23 September 2011, p. 16.

[98]      Social Ventures Australia Scoping Study, Community Development Finance Institutions (CDFIs): A new option for addressing financial exclusion in Australia, December 2009,  pp 50–52.­

[99]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 194.

[100]    Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, pp 21–22.

[101]    Committee Hansard, 9 September 2011, p. 34.

[102]    Christian Super, Submission 12, pp 4–5.

[103]    Christian Super, Submission 12, pp 4–5.

[104]    DF Mortimer & Associates, Submission 5, p. 5.

[105]    Community Sector Banking, Submission 10, pp 6, 11.

[106]    Many Rivers Microfinance, Submission 26, attachment 3, pp 1-2.

[107]    Sir Ronald Cohen, Founder and Former Director, Social Finance Ltd, Committee Hansard, 1 August 2011, p. 69.

[108]    Christian Super, Submission 12, pp 4–5.

[109]    Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 190, 192–193.

[110]    Ms Robyn Oswald, Branch Manager, Money Management Branch, FaHCSIA, Committee Hansard, 1 August 2011, p. 2.

[111]    Centre for Social Impact, Submission 27, p. 5. 

[112]    Sir Ronald Cohen, Social Finance Ltd, Submission 16, pp 8–9.

[113]    Submission 16, p. 9.

[114]    UK Cabinet Office, 'Big Society Capital: Big Society Bank launched', Media release, 28 July 2011, tabled by Sir Ronald Cohen at a public hearing in Canberra on 1 August 2011.

[115]    Big Society Capital website, http://www.bigsocietycapital.com/ (accessed 20 September 2011).

[116]    Social Finance Ltd, 'The Big Society Bank ("BSB") Outline Proposal', Submission 16–attachment, pp 4–5.

[117]    Social Finance Ltd, 'The Big Society Bank ("BSB") Outline Proposal', Submission 16–attachment, pp 6–7.

[118]    UK Cabinet Office, 'Big Society Bank launched', 28 July 2011, pp 2–3, tabled by Sir Ronald Cohen at a public hearing in Canberra on 1 August 2011.

[119]    UK Cabinet Office, 'Big Society Bank launched', 28 July 2011, p. 2, tabled by Sir Ronald Cohen at a public hearing in Canberra on 1 August 2011.

[120]    Mr Glen Saunders, Director, Triodos Bank, Committee Hansard, 9 September 2011, p. 7.

[121]    Committee Hansard, 23 September 2011, p. 52.

[122]    Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, pp 40–41.

[123]    Australian Associated Press, 'Unclaimed Funds top $636 million', The Age, 25 October 2011, http://www.theage.com.au/money/saving/unclaimed-funds-top-636-million-20111025-1mgwf.html (accessed 27 October 2011).

[124]    Banking Act 1959, s. 69.

Part III: Emerging investment vehicles and innovation - Emerging social investment options

[1]        YMCA, Submission 1; Chris O'Brien Lifehouse at RPA, Submission 8, pp 4–5; Social Finance Ltd, Submission 16; The Archerfish Foundation, Submission 17; JBWere, Submission 19, pp 15–16; Benevolent Society, Submission 25; The Centre for Social Impact; Submission 27, pp 11–12.

[2]        Social Ventures Australia, Submission 2, p. 2; DEEWR and PM&C, Submission 9, pp 16–17; Centre for Social Impact, PowerPoint Presentation tabled at a public hearing , 1 August 2011.

[3]        Department of Education, Employment and Workplace Relations (DEEWR) and Department of the Prime Minister and Cabinet (PM&C), Submission 9, p. 21.

[4]        DEEWR and PM&C, Submission 9, p. 20.

[5]        Committee Hansard, 9 September 2011, p. 46.

[6]        Global Impact Investing Network, What is Impact Investing?, http://www.thegiin.org/cgi-bin/iowa/investing/index.html (accessed 1 September 2011).

[7]        JP Morgan, Impact Investments: An emerging asset class, November 2010, p. 20.

[8]        Monitor Institute, Investing for Social and Environmental Impact, January 2009, p. 5.

[9]        DEEWR and PM&C, Submission 9, p. 20.

[10]      JP Morgan, Impact Investments: An emerging asset class, November 2010, p. 8.

[11]      Global Impact Investing Network, What is Impact Investing?, http://www.thegiin.org/cgi-bin/iowa/investing/index.html (accessed 1 September 2011).

[12]      DEEWR and PM&C, Submission 9, p. 23.

[13]      Monitor Institute, Investing for Social and Environmental Impact, January 2009, p. 9.

[14]      Centre for Social Impact, Report on the NSW Government Social Impact Bond Pilot, February 2011, p. 25.

[15]      Centre for Social Impact, Submission 27, p. 5; Australian School of Business, 'Social Impact Bonds: Can This New asset Class Create More Than a Win-Win?', 15 March 2011,  http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1359 (accessed 7 October 2011).

[16]      DEEWR and PM&C, Submission 9, p. 24.

[17]      Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 20.

[18]      Sir Ronald Cohen, Social Finance Ltd, Committee Hansard, 1 August 2011, p. 64.

[19]      JP Morgan, Impact Investments: An emerging asset class, November 2010, p. 5.

[20]      Monitor Institute, Investing for Social and Environmental Impact, January 2009, p. 31.

[21]      Monitor Institute, Investing for Social and Environmental Impact, January 2009, p. 31.

[22]      Monitor Institute, Investing for Social and Environmental Impact, January 2009, p. 32.

[23]      JBWere, Submission 19, pp 21, 29.

[24]      Centre for Social Impact, Report on the NSW Government Social Impact Bond Pilot, February 2011, p. 24.

[25]      Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 19.

[26]      JP Morgan, Impact Investments: An emerging asset class, November 2010, p. 5.

[27]      Mr Ian Learmonth, Director, Social Finance, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 23.

[28]      Mr Michael Traill, Chief Executive Officer, Social Ventures Australia, Committee Hansard, 1 August 2011, p. 19.

[29]      JBWere, Submission 19, p. 8.

[30]      Community Sector Banking, Submission 10, p. 8.

[31]      Mr Glen Saunders, Senior Advisor to the Executive Board, Triodos Bank, Committee Hansard, 9 September 2011, p. 5.

[32]      Ms Belinda Drew, Chief Executive Officer, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 31.

[33]      Ms Belinda Drew, Chief Executive Officer, Foresters Community Finance, Committee Hansard, 1 August 2011, p. 33.

[34]      A step-up bond pays an initial coupon rate for the first term and then an increased rate for the following periods.

[35]      JBWere, Submission 19, p. 14.

[36]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 2; The Benevolent Society, Submission 25, pp 2–3; JBWere, Submission 19, p. 14.

[37]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 1; The Benevolent Society, Submission 25, p. 2; Social Ventures Australia, Committee Hansard, 1 August 2011, p. 18.
Mezzanine finance is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies or build development projects. It is usually debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full (taken from Australian Securities and Investment Commission, Money Smart website glossary, http://www.moneysmart.gov.au/glossary/m) (accessed 28 October 2011).

[38]      JBWere, Submission 19, pp 12–13.

[39]      Benevolent Society, 'New social bond issue for pioneering retirement project', http://www.bensoc.org.au/search/result.cfm?item_id=E73BA3CCD765A8612BD4CDFFD1CCCAB5 (accessed 7 February 2011); Benevolent Society, Submission 25, p. 2.

[40]      Mr Brent Cubis, Chief Finance Officer, The Chris O'Brien Lifehouse at RPA, Committee Hansard, 23 September 2011, p. 18; The Centre for Social Impact, Submission 27, p. 19.

[41]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; JBWere, Submission 19, pp 12–13; Benevolent Society, Submission 25, p. 3; Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 23.

[42]      Mr Stephen Hawkins, Executive, Social Initiatives, The Benevolent Society, Committee Hansard, 23 September 2011, p. 19.

[43]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 54; YMCA, Submission 1, pp 3–4; JBWere, Submission 19, p. 14; Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; Benevolent Society, Submission 25, p. 4.

[44]      Committee Hansard, 9 September 2011, p. 42.

[45]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 54; YMCA, Submission 1, pp 3–4; JBWere, Submission 19, p. 14.

[46]      YMCA, Submission 1, pp 3–4; JBWere, Submission 19, p. 14.

[47]      YMCA, Submission 1, pp 3–5.

[48]      YMCA, Submission 1, pp 3–6.

[49]      Mr Colin Organ, Group Manager, Finance, YMCA, Committee Hansard, 9 September 2011, p. 45.

[50]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; Benevolent Society, Submission 25, p. 4.

[51]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 54.

[52]      Australian Securities and Investments Commission, Money Smart website, 'Dividends', http://www.moneysmart.gov.au/investing/shares/keeping-track-of-your-shares/dividends (accessed 6 October 2011).

[53]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; Benevolent Society, Submission 25, p. 4.

[54]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; Benevolent Society, Submission 25, p. 4.

[55]      Mr Brent Cubis, Chief Finance Officer, The Chris O'Brien Lifehouse at RPA, Committee Hansard, 23 September 2011, p. 20.

[56]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 4; Benevolent Society, Submission 25, p. 5.

[57]      Mr Brent Cubis, Chief Finance Officer, The Chris O'Brien Lifehouse at RPA, Committee Hansard, 23 September 2011, p. 21.

[58]      Mr Stephen Hawkins, Executive, Social Initiatives, The Benevolent Society, Committee Hansard, 23 September 2011, p. 21.

[59]      Committee Hansard, 26 September 2011, p. 26.

[60]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 3; The Benevolent Society, Submission 25, pp 3–4.

[61]      The Benevolent Society, Submission 25, p. 4.

[62]      Mr Stephen Hawkins, Executive, Social Initiatives, The Benevolent Society, Committee Hansard, 23 September 2011, p. 19.

[63]      JBWere, Submission 19, p. 15.

[64]      JBWere, Submission 19, pp 15–16.

[65]      Mr Christopher Thorn, Executive Director, JBWere, Committee Hansard, 1 August 2011, p. 11.

[66]      Sir Ronald Cohen, Interview with Dr Peter Shergold, Sky News Australia, 14 January 2011, http://www.skynews.com.au/video/?vId=2092636&cId=Programs&play=true (accessed 5 February 2011); Australian School of Business, 'Social Impact Bonds: Can This New asset Class Create More Than a Win-Win?', 15 March 2011,  http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1359 (accessed 7 October 2011).

[67]      Australian School of Business, 'Social Impact Bonds: Can This New asset Class Create More Than a Win-Win?', 15 March 2011,  http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1359 (accessed 7 October 2011).

[68]      Government of New South Wales, 'Social Impact Bonds—First in Australia', Media release, 25 November 2010, http://www.csi.edu.au/assets/document/NR%20-%20SOCIAL%20IMPACT%20BONDS%20%E2%80%93%20FIRST%20IN%20AUSTRALIA.pdf (accessed 7 November 2011).

[69]      The Young Foundation, Social Impact Investment: the challenge and opportunity of Social Impact Bonds, March 2011, pp 23–27; Centre for Social Impact, Report on the NSW Government Social Impact Bond Pilot, February 2011, p. 19.

[70]      JBWere, Submission 19, p. 13.

[71]      Social Ventures Australia, Submission 2, p. 1; Archerfish Foundation, Submission 17; JBWere, Submission 19, p. 15; Social Finance Pty Ltd, Submission 21, p. 2; The Centre for Social Impact, Submission 27, pp 11–12; Life Without Barriers, Submission 33.

[72]      Community Council for Australia, Submission 15, p. 5.

[73]      Social Finance Pty Ltd, Submission 21, p. 2.

[74]      Social Finance Ltd, Submission 16, p. 14.

[75]      Sir Ronald Cohen, Interview with Dr Peter Shergold, Sky News Australia, 14 January 2011, http://www.skynews.com.au/video/?vId=2092636&cId=Programs&play=true (accessed 5 February 2011).

[76]      Mr Paul Ronalds, First Assistant Secretary, Department of the Prime Minister and Cabinet, Committee Hansard, 26 September 2011, p. 28.

[77]      The Young Foundation, Social Impact Investment: The opportunity and challenge of social impact bonds, March 2011, pp 16–17.

[78]      The Archerfish Foundation, Submission 17, pp 8–10.

[79]      The Young Foundation, Social Impact Investment: The opportunity and challenge of social impact bonds, March 2011, pp 16–17.

[80]      The Archerfish Foundation, Submission 17, p. 7; Social Finance Ltd, Submission 16, pp 10–11; Life Without Barriers, Submission 34, pp 3–4; Associate Professor Cheryl Kernot, Director of Social Business, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 39.

[81]      Social Finance Ltd, Submission 16, p. 10; An explanation of the project by the United Kingdom's Justice Secretary Kenneth Clarke QC MP can be found at http://www.youtube.com/watch?v=z6RymEOSQjY&feature=player_embedded.

[82]      The Big Lottery Fund uses proceeds from the National Lottery to finance community groups and projects that improve health, education and the environment, http://www.biglotteryfund.org.uk/ (accessed 7 October 2011).

[83]      BBC News, 'Private backers fund scheme to cut prisoner reoffending', http://www.bbc.co.uk/news/uk-11254308 (accessed 10 February 2011).

[84]      Committee Hansard, 1 August 2011, pp 65–66.

[85]      Committee Hansard, 1 August 2011, p. 65.

[86]      Mark Easton, BBC News, 'The name is bond: social impact bond', 19 January 2011, http://www.bbc.co.uk/blogs/thereporters/markeaston/2011/01/the_name_is_bond_social_impact.html?page=333 (accessed 1 November 2011).

[87]      Disley et al., RAND Europe, commissioned by the UK Ministry of Justice, Lessons learned from the planning and early implementation of the Social Impact Bond at HMP Peterborough, May 2011, p. 43.

[88]      Disley et al., RAND Europe, Lessons learned from the planning and early implementation of the Social Impact Bond at HMP Peterborough, May 2011, p. iv.

[89]      Big Lottery Fund, BIG paves way forward through social investment, Press release, 31 August 2010, http://news.biglotteryfund.org.uk/pr_310810_uk_ri_big_paves_way_forward (accessed 2 November 2011).

[90]      Committee Hansard, 1 August 2011, p. 66.

[91]      Cabinet Office, 'Big Society innovation aims to get families out of deprivation', Media Release, 26 August 2011, http://www.cabinetoffice.gov.uk/news/big-society-innovation-aims-get-families-out-deprivation (accessed 6 October 2011).

[92]      Associate Professor Cheryl Kernot, 'Social Impact/Social Benefit Bonds grow ... an update', Centre for Social Impact blogs, 4 November 2011, http://blogs.unsw.edu.au/knowledgetoday/blog/2011/11/social-impactsocial-benefit-bonds-grow-%E2%80%A6-an-update/ (accessed 10 November 2011).

[93]      The Economist, 'Performance Bonds, Who succeeds gets paid: Barack Obama imports a big idea from Britain', 17 February 2011, http://www.economist.com/node/18180436 (accessed 7 October 2011); The Office of Management and Budget, the White House, 'The Federal Budget Fiscal Year 2012: Paying for Success', http://www.whitehouse.gov/omb/factsheet/paying-for-success (accessed 7 October 2011).

[94]      Commonwealth of Massachusetts Executive Office for Administration and Finance, 'Massachusetts Pursues Social Innovation Financing to Spur Innovation and Build on Program Success', Media Release, 6 May 2011, http://www.mass.gov/anf/mass-pursues-social-innovation-financing.html (accessed 1 November 2011).

[95]      Government of New South Wales, 'Social Impact Bonds—First in Australia', Media release, 25 November 2010, http://www.csi.edu.au/assets/document/NR%20-%20SOCIAL%20IMPACT%20BONDS%20%E2%80%93%20FIRST%20IN%20AUSTRALIA.pdf (accessed 7 November 2011).

[96]      Centre for Social Impact, 'Report on the NSW Government Social Impact Bond Pilot: Executive Summary', 5 February 2011, pp 4–5.

[97]      Committee Hansard, 1 August 2011, p. 38-39; Centre for Social Impact, 'Report on the NSW Government Social Impact Bond Pilot: Executive Summary', 5 February 2011, pp 8–9, 20–21.

[98]      Committee Hansard, 1 August 2011, pp 38–39.

[99]      Centre for Social Impact, Submission 27, p. 11; Committee Hansard, 1 August 2011, p. 37, pp 43–44; Centre for Social Impact, 'Report on the NSW Government Social Impact Bond Pilot: Executive Summary', 5 February 2011, pp 8–9, 20–21.

[100]    Australian School of Business, 'Social Impact Bonds: Can This New asset Class Create More Than a Win-Win?', 15 March 2011,  http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1359 (accessed 7 October 2011).

[101]    Christian Super, Submission 12, p. 5.

[102]    Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 37.

[103]    Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 45.

[104]    Centre for Social Impact, 'Report on the NSW Government Social Impact Bond Pilot: Executive Summary', 5 February 2011, pp 9–10.

[105]    Mr Les Hems, Centre for Social Impact, 'Social impact bonds – not a panacea but worth investing in', https://secure.csi.edu.au/site/Home/Blog.aspx?defaultblog=https://blog.csi.edu.au/2011/03/social-impact-bonds-%e2%80%93-not-a-panacea-but-worth-investing-in/ (accessed 12 September 2011).

[106]    Australian School of Business, 'Social Impact Bonds: Can This New asset Class Create More Than a Win-Win?', 15 March 2011,  http://knowledge.asb.unsw.edu.au/article.cfm?articleid=1359 (accessed 7 October 2011).

[107]    'Social Impact bonds Tipped as Win for All', Australian Financial Review, 5 September 2011, p. 7.

[108]    Mr Patrick Dodson and Mr Ian Gill, 'A Bran Nue Way ahead, The Age, 17 August 2011.

[109]    Mr Ian Gill, Chief Executive Officer, Ecotrust, Committee Hansard, 23 September 2011, p. 12.

[110]    Mr Patrick Dodson and Mr Ian Gill, 'A Bran Nue Way ahead, The Age, 17 August 2011.

[111]    Mr Patrick Dodson and Mr Ian Gill, 'A Bran Nue Way ahead, The Age, 17 August 2011.

[112]    Mr Ian Gill, Chief Executive Officer, Ecotrust, Committee Hansard, 23 September 2011, p. 12.

[113]    Mr Ian Gill, Chief Executive Officer, Ecotrust, Committee Hansard, 23 September 2011, pp 12‑13.

[114]    Mr Sandy Cameron, Manager, Policy, Research, Cape York Institute for Policy and Leadership, Committee Hansard, 23 September 2011, p. 33.

[115]    Committee Hansard, 1 August 2011, p. 67.

[116]    Mr Ian Gill, Chief Executive Officer, Ecotrust, Committee Hansard, 23 September 2011, p. 17.

[117]    Committee Hansard, 23 September 2011, p. 17.

[118]    Associate Professor Cheryl Kernot, Director of Social Business, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 40.

[119]    Mr Paul Ronalds, First Assistant Secretary, Department of the Prime Minister and Cabinet, Committee Hansard, 1 August 2011, p. 57.

[120]    Mr Paul Ronalds, First Assistant Secretary, Department of the Prime Minister and Cabinet, Committee Hansard, 26 September 2011, p. 28.

Chapter 7 - Accurately measuring results

[1]        Department of Education, Employment and Workplace Relations (DEEWR) and the Department of the Prime Minister and Cabinet (PM&C), Submission 9, p. 34.

[2]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 31.

[3]        Social impact investment is the use of investment and financing mechanisms to deliver some measure of both financial and social returns.

[4]        The Archerfish Foundation, Submission 17, p. 7; Social Finance Ltd, Submission 16, pp 10–11; Life Without Barriers, Submission 34, pp 3–4; Associate Professor Cheryl Kernot, Director of Social Business, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 39.

[5]        DEEWR and PM&C, Submission 9, p. 34.

[6]        The Young Foundation, Social Impact Investment: The opportunity and challenge of social impact bonds, March 2011, pp 16–17.

[7]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp xli–xlii (recommendations 5.2 and 5.3).

[8]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xxxiv.

[9]        An investment strategy that promotes positive environmental, social or ethical issues and avoids investment in industries and companies that produce goods harmful to health, society or the environment (e.g. chemicals, tobacco, armaments). Each fund will have its own interpretation of the values it wants to protect or promote. It is also known as ethical investment, and sustainable or socially conscious investment. Taken from the Money Smart Website, 'Glossary: Ethical investment' http://www.moneysmart.gov.au/glossary/e (accessed 31 October 2011).

[10]      Committee Hansard, 1 August 2011, pp 43–44.

[11]      DEEWR and PM&C, Submission 9, p. 34; The Centre for Social Impact, Submission 27,
pp 7–8.

[12]      Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 43.

[13]      DEEWR and PM&C, Submission 9, p. 34.

[14]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 27.

[15]      Christian Super, Submission 12, p. 6.

[16]      Ms Sarah Adams, NAB Research Fellow, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 44.

[17]      Christian Super, Submission 12, p. 6; Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 32, 44.

[18]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 44–45.

[19]      DEEWR and PM&C, Submission 9, p. 34; The Young Foundation and NESTA, Growing Social Ventures: The Role of Intermediaries and Investors, 2011, p. 46.

[20]      DEEWR and PM&C, Submission 9, p. 34.

[21]      Centre for Social Impact, Submission 27, pp 7–8.

[22]      IRIS, 'Impact Reporting and Investment Standards', http://iris.thegiin.org, (accessed 5 October 2011).

[23]      Ms Rosemary Addis, Social Innovation Strategist, DEEWR, Committee Hansard, 1 August 2011, p. 63.

[24]      Global Impact Investing Rating System, 'Ratings and Analytics for Impact Investing', http://giirs.org, (accessed 5 October 2011).

[25]      Ms Rosemary Addis, Social Innovation Strategist, DEEWR, Committee Hansard, 23 September 2011, p. 59.

[26]      International Integrated Reporting Committee, 'Integrated Reporting', http://www.theiirc.org/, (accessed 5 October 2011).

[27]      International Integrated Reporting Committee, Towards integrated reporting: Communicating Value in the 21^st Century, September 2011, pp 7, 22.

[28]      International Integrated Reporting Committee, Towards integrated reporting: Communicating Value in the 21^st Century, September 2011, pp 1, 8–15.

[29]      Those listed on the Johannesburg Stock Exchange.

[30]      Ms Sarah Adams, National Australia Bank Research Fellow at the Centre for Social Impact, video interview on integrated reporting, http://www.csi.edu.au/news/Sarah_Adams_appointed_CSIs_NAB_Research_Fellow.aspx (accessed 31 October 2011).

[31]      Integrated Reporting Committee of South Africa, Framework for integrated reporting and the integrated report: discussion paper, 25 January 2011.

[32]      The Social Return on Investment Network International, http://www.thesroinetwork.org/ (accessed 7 October 2011).

[33]      Social Finance, Towards a new social economy: Blended value creation through social impact bonds, March 2010, p. 14.

[34]      Melinda Tuan, 'Measuring and/or estimating social value creation: Insights Into Eight Integrated Cost Approaches', 15 December 2008, http://www.gatesfoundation.org/learning/documents/wwl-report-measuring-estimating-social-value-creation.pdf (accessed 13 October 2011).

[35]      Social Traders website, 'Measuring social impact', http://www.socialtraders.com.au/social-enterprise-tools#Measuring_Social_Impact (accessed 31 October 2011).

[36]      Centre for Social Impact, Recent approaches to measuring social impact in the Third sector: An overview, July 2009, http://www.csi.edu.au/assets/assetdoc/b20aada17ffad8f7/V2%20CSI%20Background%20Paper%20No%205%20-%20Approaches%20to%20measuring%20social%20impact.pdf (accessed 31 October 2011).

[37]      Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, pp 51–52 and Appendix B, 'Techniques of social evaluation', B.1–B.52, (only available online) http://www.pc.gov.au/__data/assets/pdf_file/0006/94704/21-appendixb.pdf (accessed 31 October 2011).

[38]      For example, one of the participants in the Foresters project expressed a need for a uniform mechanism to measure the social impact of enterprises, and for it be accessible as a free download on the internet. See Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 30).

[39]      Ms Sarah Adams, National Australia Bank Research Fellow, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 44.

[40]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 33.

[41]      The Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 15.

[42]      Ms Sarah Adams, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 43.

[43]      Centre for Social impact website, 'Integrated Reporting: An Opportunity for Australia's Not-for-Profit Sector', http://www.csi.edu.au/news/Integrated_Reporting__An_Opportunity_for_Australias_Not-for-Profit_Sector.aspx (accessed 31 October 2011).

[44]      Centre for Social Impact, http://www.csi.edu.au/news/Sarah_Adams_appointed_CSIs_NAB_Research_Fellow.aspx (accessed 31 October 2011).

[45]      IIRC, 'Integrated reporting', http://www.theiirc.org/ (accessed 31 October 2011).
As part of the IIRC discussion paper on the future of reporting practices it has asked for companies to take part in a two-year pilot program beginning in October 2011. CSI will provide research support for corporate partners participating in the IIRC pilot program and will be leading a research programme that looks at the application of shared value and integrated reporting in Australia. Centre for Social Impact, 'Integrated Reporting: An Opportunity for Australia's Not-for-Profit Sector', 21 September 2011, http://www.csi.edu.au/news/Integrated_Reporting__An_Opportunity_for_Australias_Not-for-Profit_Sector.aspx (accessed 31 October 2011).

[46]      Centre for Social Impact, http://www.csi.edu.au/news/Sarah_Adams_appointed_CSIs_NAB_Research_Fellow.aspx (accessed 31 October 2011).

[47]      Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 43.

[48]      Committee Hansard, 1 August 2011, p. 43.

[49]      Centre for Social Impact, Committee Hansard, 1 August 2011, p. 43.

[50]      Additional information received from DEEWR, 12 August 2011, 'Social Enterprise Finance Australia Ltd (SEFA) profile', p. 3.

[51]      Foresters Community Finance, Submission 4a, p. 8.

[52]      Social Ventures Australia, 'Consulting: support to demonstrate impact through SROI', http://www.socialventures.com.au/wp-content/uploads/2010/08/SVA_Consulting_SROI.pdf (accessed 15 November 2011).

[53]      Dr Richard Seymour, The University of Sydney Business School, Submission 36a, p. 5.

[54]      Dr Richard Seymour, The University of Sydney Business School, Submission 36a, pp 4 and 3.

[55]      Christian Super, Submission 12, p. 6; Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 32, 44.

[56]      Committee Hansard, 1 August 2011, p. 43.

[57]      PM&C and DEEWR, Submission 9, p. 34.

[58]      Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. 33.

[59]      Centre for Social Impact, Submission 27, p. 7.

[60]      Productivity Commission, Contribution of the Not-for-Profit sector, January 2010, p. 29, Appendix B, 'Techniques of social evaluation'; Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 27.

[61]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, pp 33–34, 36.

[62]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 36.

[63]      Committee Hansard, 26 September 2011, p. 27.

[64]      Committee Hansard, 26 September 2011, p. 25; Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 52.

[65]      Committee Hansard, 26 September 2011, p. 25.

[66]      Social Finance, Towards a new social economy: Blended value creation through social impact bonds, March 2010, pp 13–14.

[67]      Mr Sandy Cameron, Manager, Policy, Research, Cape York Institute for Policy and Leadership, Committee Hansard, 23 September 2011, p. 33.

[68]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 29.

[69]      Mr Paul Ronalds, First Assistant Secretary, Office of Work and Families, PM&C, Committee Hansard, 26 September 2011, p. 28.

[70]      Mr Paul Ronalds, First Assistant Secretary, Office of Work and Families, PM&C, Committee Hansard, 1 August 2011, p. 59.

[71]      Mr Paul Ronalds, First Assistant Secretary, Office of Work and Families, PM&C, Committee Hansard, 26 September 2011, pp 30–31, 34.

[72]      Centre for Social Impact, Submission 27, p. 12.

[73]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, Chapter 3, 'A measurement framework', pp 29–52 and Appendix B, 'Techniques of social evaluation' pp B.1–B.52 (only available online), http://www.pc.gov.au/__data/assets/pdf_file/0006/94704/21-appendixb.pdf (accessed 31 October 2011).

Chapter 8 - Financing social enterprise

[1]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xix.

Social enterprises are organisations that are led by an economic, social, cultural or environmental mission consistent with a public or community benefit; trade to fulfil their mission; derive a substantial portion of their income from trade; and reinvest the majority of their profit/surplus in the fulfilment of their mission. (Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Finding Australia's Social Enterprise Sector: Final Report', June 2010, p. 4.)

[2]        Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 35.

[3]        Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 35.

[4]        Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 9; SENTECH, Submission 18–attachment 2, Heerad Sabeti, Fourth Sector Network, The Emerging Fourth Sector: Executive Summary, pp 1-2.

[5]        Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 4.

[6]        Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, pp 18–19.

[7]        Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 18.

[8]        Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 7–8.

[9]        Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 7.

[10]      Catherine Brown and Associates Pty Ltd, Submission 11, p. 2.

[11]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 2; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 7–8; Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14, p. 3.

[12]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 2.

[13]      Department of Education, Employment and Workplace Relations, 'Social Innovation: The Social Enterprise Development and Investment Fund', http://www.deewr.gov.au/Employment/Programs/SocialInnovation/SocialEnterprise/Pages/SEDIF.aspx (accessed 22 November 2011).

[14]      Social Traders, Submission 7, p. 3; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 41.

[15]      Mr Tim Macready, Chief Investment Officer, Christian Super, Committee Hansard, 23 September 2011, p. 8.

[16]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 42, 54.

[17]      Social Firms Australia, Submission 22, p. 1.

[18]      Social Firms Australia, Submission 22, p. 3.

[19]      Social Firms Australia, Submission 22, p. 3.

[20]      Job Services Australia (JSA) is a government funded network of organisations, private and community, managed by DEEWR to deliver employment services to unemployed job seekers on government income support payments and employers. JSA providers are allocated business through a competitive tender process, with contract periods varying in lengths of time determined by the government.

[21]      Social Ventures Australia, Submission 2, p. 3.

[22]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 35–37, 50.

[23]      Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14–attachment 1, Co-operative Secretariat, Government of Canada, Innovative Co-ops in the Social Services Sector: A research study to benefit people with developmental disabilities and mental illness, p. 21.

[24]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, pp 37, 50.

[25]      Social Ventures Australia, Submission 2, p. 3; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 22; Productivity Commission, Submission 6, p. 2; Submission 9, pp 24–25; Community Council for Australia, Submission 15, p. 3; JB Were, Submission 19, p. 5; Social Finance Pty Ltd, Submission 21, pp 1–2.

[26]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 32.

[27]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, pp 32–33, 36.

[28]      Social Ventures Australia, Submission 2, p. 3; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 22; Productivity Commission, Submission 6, p. 2; Submission 9, pp 24–25; Community Council for Australia, Submission 15, p. 3; JB Were, Submission 19, p. 5; Social Finance Pty Ltd, Submission 21, pp 1–2.

[29]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 22.

[30]      The Jobs Fund (JF) was announced in April 2009 and supports and creates jobs and skills development through projects that build community and social infrastructure. Funding of $171 million was announced for 225 projects across Australia under the Local Jobs and Get Communities Working streams of the JF. One-off grants of up to $2 million were made to support the delivery of innovative projects that maximise job and training opportunities in local communities and deliver positive environmental, heritage and social outcomes. The majority of JF projects were completed by 30 June 2011.

[31]      The Innovation Fund is a component of Job Services Australia. It is designed to address the needs of the most disadvantaged job seekers through funding projects that will foster innovative solutions to overcome barriers to employment which they may face. The government has provided $41 million over three years from 2009–2012 for Innovation Fund projects. To date, a total of 77 projects have been funded.

[32]      The Hon. Kate Ellis MP, Minister for Employment Participation and Minister for Child Care, '$1 million for social enterprises to help long term job seekers', Media Release, 31 May 2011; Social Traders Ltd, 'Social Traders to lead national social enterprise development support project', Media Release, 14 June 2011.

[33]      Social Traders, Submission 7, p. 2.

[34]      Social Traders News, Edition No. 10, October 2011, p. 1.

[35]      Social Traders, Submission 7, p. 2.

[36]      Social Firms Australia, Submission 22, p. 4.

[37]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xxxvii.

[38]      Enterprise Connect website, http://www.enterpriseconnect.gov.au/Pages/Home.aspx (accessed 28 October 2011).

[39]      Submission 14–attachment 1, pp 13–14.

[40]      Centrelink, 'New Enterprise Incentive Scheme', http://www.centrelink.gov.au/internet/internet.nsf/services/neis.htm (accessed 28 October 2011).

[41]      Committee Hansard, 23 September 2011, p. 10.

[42]      Ms Libby Ward-Christie, Investment and Growth Manager, Social Traders Ltd, Committee Hansard, 9 September 2011, p. 18.

[43]      Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14, p. 3.

[44]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 26; Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 38.

[45]      Centre for Social Impact, Submission 27, p. 9.

[46]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 38.

[47]      Mt Buffalo Community Enterprise, Submission 24, p. 6.

[48]      Social Traders, Submission 7, p. 3.

[49]      Social Traders, Submission 7, p. 2.

[50]      Fundraising Institute of Australia, Submission 23, p. 4.

[51]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 39.

[52]      The Centre for Social Impact, Submission 27, p. 9.

[53]      Social Traders, Submission 7, p. 2.

[54]      Fundraising Institute of Australia, Submission 23, p. 4.

[55]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 194.

[56]      Social Ventures Australia, Submission 2, p. 3.

[57]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 194.

[58]      Foresters Community Finance, 'Financing Social Enterprise: Understanding Needs and Realities', Submission 4–attachment 3, p. 39.

[59]      DEEWR and PM&C, Submission 9, p. 30.

[60]      Submission 9, p. 30.

[61]      Submission 9, p. 29.

[62]      Additional information received from DEEWR, cover letter, 12 August 2011.

[63]      Additional information received from DEEWR, 'Social Enterprise Development and Investment Funds (SEDIF) – Frequently Asked Questions', 12 August 2011.

[64]      Additional information received from DEEWR, 'Social Enterprise Finance Australia Ltd (SEFA) profile', 12 August 2011.

[65]      Additional information received from DEEWR, 'Foresters Community Finance profile', 12 August 2011.

[66]      Ms Libby Ward-Christie, Investment and Growth Manager, Social Traders Ltd, Committee Hansard, 9 September 2011, p. 17; Ms Susan Bowman, Manager, Business Development, Social Firms Australia, Committee Hansard, 9 September 2011, p. 37; Mr Simon Lewis, Head of Strategic Partnerships, Communications and Community, The Trust Company, Committee Hansard, 9 September 2011, p. 44.

[67]      Mr Peter Murphy, Chief Executive Officer, Christian Super, Committee Hansard, 23 September 2011, pp 1–2.

[68]      Ms Rosemary Addis, Social Innovation Strategist, DEEWR, Committee Hansard, 23 September 2011, p. 60.

[69]      Mr Duncan Power, Chief Executive Officer, Social Enterprise Finance Australia, Committee Hansard, 23 September 2011, pp 34, 35.

[70]      Mr Duncan Power, Chief Executive Officer, SEFA, Committee Hansard, 23 September 2011, p. 34.

[71]      Committee Hansard, 9 September 2011, p. 35.

[72]      Social Business Australia and the National UN International Year of Co‐operatives (IYC) 2012 Steering Committee, Submission 14, p. 5.

[73]      Additional information received from DEEWR, 'Social Enterprise Development and Investment Funds (SEDIF) – Frequently Asked Questions', 12 August 2011.

[74]      Additional information received from DEEWR, 'Social Enterprise Development and Investment Funds (SEDIF) – Frequently Asked Questions', and 'Social Enterprise Finance Australia Ltd (SEFA) profile', 12 August 2011.

[75]      Foresters Community Finance, Submission 4a, p. 8.

[76]      Ms Rosemary Addis, Social Innovation Strategist, DEEWR, Committee Hansard, 23 September 2011, p. 59.

[77]      Additional information received from DEEWR, 'Social Enterprise Development and Investment Funds (SEDIF) – Frequently Asked Questions', 12 August 2011.

[78]      Ms Rosemary Addis, Social Innovation Strategist, DEEWR, Committee Hansard, 23 September 2011, p. 60.

[79]      Ingrid Burkett, Social Procurement in Australia, December 2010, p. 5.

[80]      Social Traders, 'Social Procurement', http://www.socialtraders.com.au/social-procurement (accessed 2 August 2011).

[81]      Social Firms Australia, Submission 22, p. 4.

[82]      Social Firms Australia, Submission 22, p. 4.

[83]      Social Traders, Submission 7, p. 3.

[84]      Social Traders, Submission 7, p. 3.

[85]      Department of Planning and Community Development, State Government of Victoria, 'Social Procurement', http://www.dpcd.vic.gov.au/localgovernment/councils-reforming-business/procurement/social-procurement (accessed 28 September 2011).

[86]      Associate Professor Cheryl Kernot, Director of Social Business, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 41.

[87]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 8.

[88]      Social Business Australia and the National UN International Year of Co‐operatives 2012 Steering Committee, Submission 14–attachment 1, p. 12; Nundah Community Enterprise Co-operative, http://ncec.com.au/content/view/12/26/ (accessed 30 August 2011).

[89]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, Finding Australia's Social Enterprise Sector: Final Report, June 2010, p. 25.

[90]      Australian Centre for Philanthropy and Nonprofit Studies and Social Traders, 'Social Enterprise in Australia: a preliminary snapshot', June 2010, p. 2.

[91]      Social Business Australia and the National UN International Year of Co‐operatives 2012 Steering Committee, Submission 14, p. 1.

[92]      Centre for Social Impact, Submission 27, p. 9.

[93]      SENTECH, Submission 18, p. 1.

[94]      SENTECH, Submission 18, p. 2

[95]      SENTECH, Submission 18, p. 2.

[96]      Centre for Social Impact, Submission 27, p. 20.

[97]      Hepburn Community Wind Park Co-operative Limited, Submission 20, p. 1.

[98]      Mr Martin May, Director, Hepburn Community Wind Park Co-operative Limited, Committee Hansard, 9 September 2011, p. 24.

[99]      Employee Ownership Group, http://www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 2 August 2011); see also Australian Employee Ownership Association, Australian Institute of Company Directors and Australian Shareholders Association, 'Employee Share Ownership Plan Guidelines', February 2007, http://www.aeoa.org.au/docs/0024/Employee%20Share%20Ownership%20Plan%20Guidelines.pdf (accessed 7 November 2011).

[100]    Social Business Australia and the National UN International Year of Co‐operatives 2012 Steering Committee, Submission 14, pp 1–2.

[101]    SENTECH, Submission 18, p. 2.

[102]    Committee Hansard, 23 September 2011, p. 46.

[103]    Mr Les Hems, Director of Research, Centre for Social Impact, Committee Hansard, 1 August 2011, p. 41.

[104]    Australian Employee Ownership Association Inc, Social Business Australia; Australian Employee Buyout Centre  Ltd and the IYC 2012 Secretariat Ltd, Submission 37, p. 1.

[105]    Australian Employee Ownership Association Inc, Social Business Australia; Australian Employee Buyout Centre  Ltd, IYC 2012 Secretariat Ltd, Submission 37, p. 1.

[106]    Australian Employee Ownership Association Inc, Social Business Australia; Australian Employee Buyout Centre  Ltd, IYC 2012 Secretariat Ltd, Submission 37, p. 1.

  - The role for government in promoting finance for social economy organisations

[1]        Department of Education, Employment and Workplace Relations (DEEWR) and the Department of the Prime Minister and Cabinet (PM&C), Submission 9, p. 10. See also Centre for Social Impact, Submission 27, p. 11.

[2]        DEEWR and PM&C, Submission 9, p. 36. The diagram is based on a 2003 World Bank report.

[3]        ACNC Implementation Taskforce, Treasury, Submission 35, p. 4.

[4]        Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 26.

[5]        Dr Ingrid Burkett, Managing Director, Knode Pty Ltd, Committee Hansard, 9 September 2011, p. 31.

[6]        Mr David Crosbie, 'Not-for-profit organisations need a fairer go now', The Canberra Times, 7 March 2011, p. 9. Submitted to this inquiry as a supplementary submission by the Community Council for Australia.

[7]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xxiii.

[8]        Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. xxiii.

[9]        National Disability Services, Submission 30, p. 4.

[10]      Ms Juantina Pope, Senior Lawyer, PILCHConnect, Committee Hansard, 9 September 2011, p. 52.

[11]      Mr Christopher Thorn, Council Member, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 47.

[12]      Mr Christopher Thorn, Council Member, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 47.

[13]      Fundraising Institute Australia, Submission 23, p. 4. The FIA did note that some aspects of the UK model would not be appropriate in the Australian setting.

[14]      Mount Buffalo Community Enterprise, Submission 24, p. 6.

[15]      Mount Buffalo Community Enterprise, Submission 24, p. 6.

[16]      Dr Ingrid Burkett, Managing Director, Knode Pty Ltd, Committee Hansard, 9 September 2011, p. 31.

[17]      Social Ventures Australia, Community Development Finance Institutions Scoping Study, December 2009, p. 21.

[18]      Foresters notes that there are now over 1000 CDFIs operating in the US including community development loan funds, social venture capital funds, community development credit unions and community development banks. Foresters Community Finance, Submission 4‑attachment 1, 'Financial Inclusion, market failures and new markets: Possibilities for Community Development Finance Institutions in Australia', October 2008, p. 41. Around 70 per cent of these CDFIs have been established since the introduction of these policy initiatives. Social Ventures Australia, Community Development Finance Institutions Scoping Study, December 2009, p. 22.

[19]      Mr Ian Gill, Chief Executive Officer, EcoTrust Australia, Committee Hansard, 23 September 2011, p. 16.

[20]      See Senate Economics References Committee, Report on Bank Mergers, September 2009.

[21]      Productivity Commission, Submission 6, p. 3; See also Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 57.

[22]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 57.

[23]      Mr Gordon Noble, Director of Government Relations and Strategy, Association of Superannuation Funds of Australia, Committee Hansard, 26 September 2011, p.16.

[24]      Mr Tim Macready, Chief Investment Officer, Christian Super, Committee Hansard, 23 September 2011, p. 2.

[25]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 9.

[26]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 13.

[27]      Review into the governance, efficiency, structure and operation of Australia's superannuation system, (Super System Review), Final Report, May 2010 http://www.supersystemreview.gov.au/content/downloads/final_report/part_one/Final_Report_Part_1_Consolidated.pdf (accessed 8 October 2011).

[28]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 8.

[29]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 8.

[30]      Ms Kylie Charlton, private capacity, Committee Hansard, 26 September 2011, p. 8.

[31]      Mr Nicholas Cox, Chief Operations Officer, YMCA, Committee Hansard, 9 September 2011, p. 50; Mr David Ward, Treasurer, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 48.

[32]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 177. The Income Tax Assessment Act 1997 and ATO Regulations govern the types of gifts that are tax deductible. The gift must be a transfer of the beneficial interest in property, it must be made voluntarily, the transfer must arise by way of benefaction and no material benefit or advantage can be received by the giver.

[33]      Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010-11, p. 38.

[34]      Mr Michael Hardy, Assistant Commissioner, Australian Taxation Office, Committee Hansard, 26 September 2011, p. 4.

[35]      Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010-11, p. 15.

[36]      Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010-11, p. 36.

[37]      Mr Michael Hardy, Assistant Commissioner, Australian Taxation Office, Committee Hansard, 26 September 2011, p. 3.

[38]      Mr David Ward, Treasurer, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 48.

[39]      See ATO TR 2005/13 and Division 78A of the Income Taxation Assessment Act 1936.

[40]      Division 30 of the Income Taxation Assessment Act 1997 specifies 49 categories under which organisations and funds can seek endorsement by the ATO. See Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010-11, p. 38.

[41]      See PilchConnect, 'Checklist: Deductible Gift Recipient categories', 2011.

[42]      See Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010–11, p. 38.

[43]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 177.

[44]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 177.

[45]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 177.

[46]      Productivity Commission, Contribution of the Not-for-Profit Sector, January 2010, p. 177.

[47]      Ms Robyn Oswald, Branch Manager, Money Management Branch, FaHCSIA, Committee Hansard, 1 August 2011, p. 5.

[48]      Mr Benny Callaghan, Chief Executive Officer, School for Social Entrepreneurs, Committee Hansard, 23 September 2011, p. 11.

[49]      Fundraising Institute Australia, Submission 23, p.

[50]      Mr Nicholas Cox, Chief Operations Officer, YMCA, Committee Hansard, 9 September 2011, p. 50.

[51]      Mr Andrew McLeod, Chief Executive Officer, Committee for Melbourne, Committee Hansard, 9 September 2011, p. 20.

[52]      Mr Andrew McLeod, Chief Executive Officer, Committee for Melbourne, Committee Hansard, 9 September 2011, p. 21.

[53]      Mr David Ward, Treasurer, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 48.

[54]      Mr David Ward, Treasurer, Philanthropy Australia, Committee Hansard, 9 September 2011, p. 48.

[55]      Mr Benny Callaghan, Chief Executive Officer, School for Social Entrepreneurs, Committee Hansard, 23 September 2011, p. 11.

[56]      Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010–11, p. 30.

[57]      Australian National Audit Office, 'Administration of Deductible Gift Recipients (Non-profit sector)', Audit Report No. 52 2010–11, p. 29.

[58]      Mr Brent Cubis, Chief Finance Officer, The Chris O'Brien Lifehouse at RPA, Committee Hansard, 23 September 2011, p. 20.

[59]      Chris O'Brien Lifehouse at RPA, Submission 8, p. 4; Benevolent Society, Submission 25, p. 5.

[60]      See Submission 8, p. 3.

[61]      The Benevolent Society, Submission 25, p. 4.

[62]      Christian Super, Submission 12, p. 5.

[63]      Christian Super, Submission 12, p. 6.

[64]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 26.

[65]      'Word Investments' was a decision of the High Court in December 2008, confirming that ATO charity endorsement was available to an organisation engaged in commercial enterprise, provided that the organisation existed to fund charitable purposes. When applied, this allowed Word's funeral business to be considered charitable because it existed to fund the charitable activities of another organisation. The PC report resulted in recommendations 'that this long standing freedom of charities to engage in commercial enterprise to fund altruistic purposes (whether their own or those of other charities), should continue to be allowed. Corney and Lind Legal Resource Centre, 'NFP Reform - Federal Government to move to shut the "Word Investments" gate and tax charities on unrelated business income', 11 May 2011, http://www.corneyandlind.com.au/resource-centre/not-for-profit/NFP_Reform_Unrelated_Business_Income_2011_Federal_Budget (accessed 22 September 2011).

[66]      Office for the Not-for-Profit Sector website, 'Not for Profit Sector guide to the Budget 2011–12: Budget Measures to Strengthen the Not-for-Profit Sector', p. 9, http://www.notforprofit.gov.au/sites/default/files/files/Not-for-Profit%20Sector%20Guide%20to%20the%20Budget%202011-12.pdf (accessed 22 September 2011).

[67]      Australian Government, 'A Tax Plan for our Future: Not for Profit (NFP) Sector Reforms', http://www.futuretax.gov.au/content/Content.aspx?doc=FactSheets/reform_for_nfp_sector.htm (accessed 22 September 2011).

[68]      Treasury, 'Consultation Paper - Better Targeting of Not-For-Profit Tax Concessions', 27 May 2011, http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=2056 (accessed 22 September 2011).

[69]      Australian Government, 'A Tax Plan for our Future: Not for Profit (NFP) Sector Reforms', http://www.futuretax.gov.au/content/Content.aspx?doc=FactSheets/reform_for_nfp_sector.htm (accessed 22 September 2011).

[70]      The Hon. Bill Shorten, MP, Assistant Treasurer and Minister for Financial Services and Superannuation, 'Next Stage for Not-For-Profit Reforms Announced', Media Release No. 083, 27 May 2011.

[71]      Corney and Lind, Submission 3, p. 1. Mr Ian Minnett, Chief Financial Officer, Australian Eastern Territory, Salvation Army, Committee Hansard, 23 September 2011, p. 25; Mr Murray Baird, Director, Australian Charity Law Association, Committee Hansard, 9 September 2011, p. 8. See also Treasury's Not-for-Profit Reform Newsletter, Issue 1, 14 October 2011.

[72]      Australia's Future Tax System Review Panel, Report to the Treasurer, December 2009, pp 44‑45.

[73]      Department of Sustainability, Environment, Water, Population and Communities, http://www.environment.gov.au/housing/nras/index.html (accessed 10 October 2011).

[74]      Department of Sustainability, Environment, Water, Population and Communities, 'National Rental Affordability Scheme', Frequently Asked Questions, http://www.environment.gov.au/housing/nras/index.html (accessed 10 October 2011).

[75]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, p. 62.

[76]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, 62.

[77]      Mr Tim Macready, Chief Investment Officer, Christian Super, Committee Hansard, 23 September 2011, p. 3.

[78]      Mr Murray Baird, Director, Australian Charity Law Association, Committee Hansard, 9 September 2011, p. 8.

[79]      Mr Murray Baird, Director, Australian Charity Law Association, Committee Hansard, 9 September 2011, p. 11.

[80]      Mr Gregory Peel, Chief Executive Officer and Managing Director, Community Sector Banking, Committee Hansard, 23 September 2011, p. 52.

[81]      Mr Toby Hall, Chief Executive Officer, Mission Australia, Committee Hansard, 23 September 2011, p. 52.

[82]      Mr Murray Baird, Director, Australian Charity Law Association, Committee Hansard, 9 September 2011, p. 11.

[83]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, p. 62.

[84]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, p. 62.

[85]      Mr Andrew Tyndale, Director, Grace Mutual, Committee Hansard, 9 September 2011, p. 62.

[86]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 20.

[87]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 22.

[88]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 24.

[89]      Mr Chris Reside, Chief Executive Officer, Abbeyfield Australia, Committee Hansard, 9 September 2011, p. 66.

[90]      Mr Timothy Macready, Chief Investment Officer, Christian Super, Committee Hansard, 23 September 2011, p. 2.

[91]      New Models, New Money, Submission 13, p. 2.

[92]      Christian Super, Submission 12, p. 4.

[93]      Mr Ian Gill, Chief Executive Officer, Ecotrust Australia, Committee Hansard, 23 September 2011, pp 13–14.

[94]      Mr Kevin Robbie, Director of Employment Services, Social Ventures Australia, Committee Hansard, 1 August 2011, pp 20–21.

[95]      Mr Peter Quarmby, Executive Director, Community Sector Banking, Committee Hansard, 23 September 2011, p. 52.

[96]      Mr Paul Ronalds, First Assistant Secretary, PM&C, Committee Hansard, 26 September 2011, p. 28.

[97]      Mr Paul Ronalds, First Assistant Secretary, PM&C, Committee Hansard, 26 September 2011, p. 30.

[98]      Mr Paul Ronalds, First Assistant Secretary, PM&C, Committee Hansard, 26 September 2011, p. 28.

[99]      Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 23.

[100]    Mr Paul Ronalds, First Assistant Secretary, Department of the Prime Minister and Cabinet, Committee Hansard, 26 September 2011, p. 28.

[101]    Mr Robert Fitzgerald, Commissioner, Productivity Commission, Committee Hansard, 26 September 2011, p. 25.

[102]    DEEWR and PM&C, Submission 9, p. 29.

[103]    Ms Belinda Drew, Chief Executive Officer, Foresters, Committee Hansard, 1 August 2011, p. 34.